Large Corporation driving mom and pop shops out of business

Large Corporation driving mom and pop shops out of business In this paper I would be discussing how large Corporation on driving the small businesses and the neighborhood mom and pop shop out of business, I will give some of the reason why they are concurring the close and discuss how Wal-Mart is one of the major cause of most of the mom and pop store are closing their does. I will also address prices, production, competitors and the impact it has on the small businesses.

Mom and pop shops are being run out of business they are being forced to close their stores, because they cannot keep up with the quantity of merchandise as big corporations who have the capability of ordering their products in bulk, therefore are able to offer lower prices and discounts to the consumers. Once the large corporations such as Target and Kmart moved into the community offering jobs and convenience for patrons, it began to cause a negative impact on small business like mom and pops shops they begin to suffer most of the regular customer where celebrating the arrivals of the major retailers come into the community.

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Many small businesses found themselves trying to compete with the large businesses by offering discounts and lowering the cost of some of their products. Mom and pop shops that had been serving the community for years was on the verge of closing their doors not being able to compete with the major retailer’s that had moved into the community. Most of the local patrons were taking their business to the large corporations, although the small business owner felt that many of the consumers where flocking to the large businesses just because they are new and that make it hard to compete with large businesses.

BARKER, C. (2010, December 23) Large corporations make it hard for the small businesses to barely meet their products at cost, because they are busy trying to stay in competition with the large corporations with lowering cost of products causing them to struggle. Besides from new shopping center developers lessening the space for mom and pop shops, making it harder for them trying to force them into becoming a corporation. Business ethical attitude is very important in business it does not matter if you are a large corporation or a small business including a mom and pop shops.

According to a research study done on ethical behavior from a hypothetical point of view and a relative study of ethical perception study base on managers of large corporations and the owners and managers of small companies cross seventeen years. The study shows that the level of which the significance of business integrity is equally gaining as well as losing ground within the both businesses meaning large and small companies, this was base on sixteen scenarios with questionable ethical situations profiling common businesses.

The study also shows that business leaders in both large corporations and small businesses are making more ethical decisions when it comes to their employees in the business palace. (2006) In an article written about ethical breakdown that brought a lot of attention to the public eye that spark concern about business leaders as well as leaders in government, which cause society to focus on the integrity environment of corporate America.

Although the media wanted to focus the business ethics primarily to large corporations, however ethical behavior is a great concern in any type of business may it be a large corporation or a small business including mom and pop shops. Even despite the fact that the results are not entirely consistent with all situations and issues that are involve when it comes to ethical behavior since it is such a broad issue, however experimental evidence of improvement in ethical standards does exists.

Clark (1966) Business ethic is a concern regardless of the size of the company, even with the intent to shed light on ethical realities in company no matter what the size there is a exceptional importance on mom and pop shops as well as small businesses, by having less employees small business owners can take advantage of the situations by not treating their employees fairly having equal opportunity.

Many employees of small company are afraid of reporting any wrong doing within the company with fear of being fired, because most small businesses the boss is the owner of the company therefore they feel they do not have anyone to complain too because they have a problem with the owner of the company so they just deal with the situation at hand. This is why it is so important to always have a concern no matter what size of the company. It is so important to keep awareness of business ethic in all sizes f a company when it comes to business ethic in the work place. Getting back to large corporation driving many mom and pop shops out of business even when it come to getting prescription drugs filled in the local neighborhood mom and pop shops. When the large corporation move into the community such as Wal-Malt and Walgreen who offered discount prescription drugs at a lower cost many of the local consumer started purchasing their prescription drugs from the large corporation chains.

The change in how consumers are shopping for their prescription and with the help of many employers health plan encouraging their patrons to purchase their medicine from out of state mail order companies are also helping to cause many mom and pops shops to diminish in local neighborhood. According to an article from the Hartford Courant Republicans stated that the State is going to make the circumstances even worse because the state is trying to balance the budget by reducing fees and reimbursements that is paid out to pharmacies by a approximately sixty-four million per year.

However Democrats argue against that because they states that it is part of the cuts back to offset a fiscal year shortage that was sign into law to help secure a project 3. 5 billion deficit in the subsequently following financial year. Politician stated that mom and pop pharmacies would suffer, because they are operates within a tight revenue boundary which would cause them to go out of business fast. 2011) Many of the family owned stores are gone out of the community because they are replace with big chain like Borders, but when it came to the neighborhood bookstore which was more personalize most of the stores in the community was family owned and operated they treat you just like family and that meant a lot in the community. The community mom and pop store especial the grocery stores some would allow you to get some of their merchandise on credit just base on consumer integrity.

Consumer states that large Corporation does not have that personal touch that mom and pop shop offer to the neighborhood community, consumer states that mom and pop shops took pride in making sure you were pleased with their service. Many mom and pop owners has been upset with the large Corporation moving into the neighborhoods its has cause their consumers loyalties to be tested, by the new large corporation with their large one stop super stores with the cutthroat prices and with all the latest fashion making it hard for the small businesses to compete. Although the big new colorful stores are pening in the community many of the small business owners are hoping that most of their customer are going to miss the personal attention that they receive while shopping in their stores verses the big chain store are to business and are not going to be able to offer the one on one attention, therefore the loyal customer will come back after the novelty wears off of the idea of a big chain store in the community. When new large chains comes into the area many of the consumers are more curious than anything else they want to see what the entire fuse about of the new stores that they have heard so much about in the media.

Many small stores are fighting so hard to stay afloat, because of all the large businesses moving into the community offering a large variety of merchandise able to accommodate more customers and offer more discount. The small business does not have the means to fight against the large Corporation it will send them right out of business by just trying to compete against them even with trying to lower the cost of the merchandise to the point the small business would not be making a profit therefore staying in business will not be an easy task for the small businesses.

One small business owner stated that the only way to continue to exist would be to remain in business is to find away to acclimatize with the society growing and become a one stop shop offering more variety of different products at a discounted without running the business into the ground. Wal-Mart are moving into all of the community although many of the consumer fight against Wal-Mart moving into their community, because of the traffic and afraid that it would take away from their neighborhood stores and it would bring additional customer coming into their community.

Wal-Mart managed to successfully market the stores as friendly therefore they paid careful attention to specific community needs and wants in the local businesses this is how they were able to drive the mom and pops out of business. Wal-Mart started with their prices so low it make it hard for the mom and pop stores to keep up with the competition therefore driving them out of business, Wal-mart continue to keep their prices set at a low cost after over twenty year of opening their stores all over the country, Once Wal-mart move into the communities they wipe out the friendly family owned operated small businesses.

Former Secretary of Labor, Robert B. Reich, writes in the New York Times that Wal-Mart will turn “main streets into ghost towns by sucking business away from small retailers. ” The impact that Wal-Mart have on the mom and pop stores impact the overall size of the small business sector for the entire U. S. economy base on research done on a national sensor study.

Over the year’s resident have observed many closing of small business when Wal-Mart stores open their doors in the community causing their friendly mom and pop to close their doors. In a study by Loyola University stated within two years of one of Wal-Mart stores opening over eighty of the local store in a community in Chicago had to close their doors out of business, Wal-Mart sole purpose is to keep their prices down and with Wal-Mart being able to drive their prices down it put a hurt on mom and pop stores all over.

Wal-Mart super store opening on every other corner being a one stop shop consumer are flocking more to Wal-Mart because they have everything in one store and they do not have to go to another store, which it make convenience and with this day and time everyone is looking for something quick where they do not have to run all over town to get what they need for their home.

In conclusion I have discuss what the large Corporation driving mom and pop shops out of business, because they are not able to keep up with the high demands of the consumers who are looking more of convenience and discount and the one stop shops. Wal-Mart has played a major part in causing mom and pop stores to close their doors not being able to compete with the large chain stores without running their small business in the ground, making it hard for the small business to stay afloat. Find business email example at our site

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Large Corporation driving mom and pop shops out of business. (2020, Jun 02). Retrieved from

Large Corporation driving mom and pop shops out of business

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